Air India (AI) is ramping up its codeshare arrangements to expand its network coverage and feed its international trunk routes. Since its acquisition by Tata Group nearly two years ago, it has signed 19 codeshare agreements. It now plans to establish 10 additional codeshare partnerships this financial year. Outbound travel from India is one of the fastest-growing components of global aviation. The codeshare strategy helps AI claw back market share from Gulf carriers, which had enjoyed a free run with India-origin traffic. This segment offers some of the highest margins for Indian airlines and helps shore up profitability on domestic routes, where IndiGo leads. AI is upgrading its ageing fleet, and codesharing comes in handy while it awaits aircraft deliveries.
IndiGo is not as aggressive about international alliances, which favour full-service carriers. The budget airline's dominance at home allows for a more relaxed approach to international travel. Yet, it has its own clutch of codeshare agreements, and may have to sign more as it, too, awaits delivery of long-haul aircraft. IndiGo will also have to adapt to changing preferences of Indian flyers, who are increasingly valuing service over price on domestic routes. This shift should support its international play by enabling integrated offerings across segments. While AI is currently taking the fight to West Asian airlines, IndiGo will have to join the party at some point.
Indian airlines have capitalised on the economy's rapid recovery from Covid disruptions to accelerate aircraft capacity additions. This nimbleness has helped offset some of the fuel cost advantages enjoyed by Gulf carriers. Bigger gains are possible if Indian airlines expand their presence in these segments. But fleet size isn't the only constraint. Indian aviation still needs to catch up in areas such as manpower and maintenance. For its part, AI must address legacy issues stemming from its years as a PSU. Innovative strategies like codesharing offer Indian carriers accelerated pathways to profitability.
IndiGo is not as aggressive about international alliances, which favour full-service carriers. The budget airline's dominance at home allows for a more relaxed approach to international travel. Yet, it has its own clutch of codeshare agreements, and may have to sign more as it, too, awaits delivery of long-haul aircraft. IndiGo will also have to adapt to changing preferences of Indian flyers, who are increasingly valuing service over price on domestic routes. This shift should support its international play by enabling integrated offerings across segments. While AI is currently taking the fight to West Asian airlines, IndiGo will have to join the party at some point.
Indian airlines have capitalised on the economy's rapid recovery from Covid disruptions to accelerate aircraft capacity additions. This nimbleness has helped offset some of the fuel cost advantages enjoyed by Gulf carriers. Bigger gains are possible if Indian airlines expand their presence in these segments. But fleet size isn't the only constraint. Indian aviation still needs to catch up in areas such as manpower and maintenance. For its part, AI must address legacy issues stemming from its years as a PSU. Innovative strategies like codesharing offer Indian carriers accelerated pathways to profitability.
